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CONSTRUCTION EMPLOYMENT INCREASES IN 223 METRO AREAS BETWEEN JULY 2013 & 2014 AS 25 PERCENT OF FIRMS REPORT TURNING DOWN WORK BECAUSE OF LABOR SHORTAGES

August 27, 2014

Dallas-Plano-Irving, Texas and Lake Charles, La. Top Growth List; Phoenix-Mesa-Glendale, Ariz. and Steubenville-Weirton, Ohio-W.V. Experience the Largest Actual and Percentage Declines for the Year

Construction employment expanded in 223 metro areas, declined in 72 and was stagnant in 44 between July 2013 and July 2014, according to a new analysis of federal employment data released today by the Associated General Contractors of America. As employment grows, 25 percent of firms report labor shortages are forcing them to turn down work according to a new survey conducted by SmartBrief, an industry leader in curated business news and custom content, in partnership with the association.

Association officials noted that as construction employment expands in many parts of the country many firms report having a hard time finding enough qualified workers. A survey conducted by SmartBrief, in partnership with the Associated General Contractors of America, found that two-thirds of firms report having experienced labor shortages during the past year. Those shortages are having an impact on construction activity, with twenty-five percent of firms reporting they turned down work during the past year because of a lack of labor.

Labor shortages are also having an impact on construction salaries, with 70 percent of firms reporting they are paying more for skilled labor than they did last year. Thirteen percent of respondents described those wage increases as "significant." Responding firms noted that carpenters, project managers and supervisors are the hardest positions to fill right now. They are also having difficulty finding qualified laborers, estimators, electricians, plumbers and ironworkers.

Association officials said the survey results underscore the need for action on a series of measures outlined in the association?s Workforce Development Plan. Those measures detail steps federal, state and local officials should take to make it easier for schools, associations and businesses to establish career training and education programs.

According to the survey results, labor shortages appear more widespread in the South and Midwest than in the Northeast or West. The survey was distributed via the AGC SmartBrief newsletter in early June. Over 500 newsletter subscribers completed the survey, 48 percent of whom are general contractors and 28 percent of whom are subcontractors.

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